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Standard Quantities and Costs: DM (.25 ft per unit at $10 per foot )=$2.50 DL (.5 hour per unit at $20 per hour) =$10.00 Total
Standard Quantities and Costs: DM (.25 ft per unit at $10 per foot )=$2.50 DL (.5 hour per unit at $20 per hour) =$10.00 Total Direct Cost per unit =$12.50 Additional information: During the period, MK, Inc. budgeted to produce 2,000 widgets. It actually produced 1,900 widgets. Actual Quantities, and Costs: DM purchased & used =505 feet at $9.80 DL hours used =990 hours at $19.75 Required: Calculate the following variances using the matrix format mentioned above or formulas: - Price Variance - Quantity Variance - Total DM Variance - Rate Variance - Efficiency Variance - Total DL Variance
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